With the Q2 earnings season winding down and nothing major on the economic calendar in the coming days, the stock market may simply be lacking in catalysts. After last week’s mixed economic data, it is hard to tell direction. The uncertainty comes from Friday’s soft jobs report. Normally a miss expectation job report should lead the market down a lot. This is going to be offset by the possibility of the tapering event. The bad part here is the report failed to throw up any evidence of improvement in the economy, it wasn’t bad enough to stop the Fed from contemplating the ‘Taper’.
Again, I think the overall market is efficient at this moment. Investors seem to be hoping that everything will continue breaking out in favor of stocks. This week is going to be earnings driven. Good earnings will drive up. It has played out that way lately since people believe improved economic growth and stronger corporate earnings will offset higher interest rates.
This week's ER schedule is not very exciting. The research I subscribed gives me 14 shorts vs 4 longs. I am going to trade couple. If I have time I will post here.
--------------------------------------------------
I received a question on why I exit RE even though the signal is still positive. I found a chart from Kimble which explains it pretty well. This is not a good time to invest in RE for a prudent investor like me.
No comments:
Post a Comment